Products and Platforms
TCS ERP on Cloud
TCS ERP on Cloud for SAP Landscape Migration and Modernization
HIGHLIGHTS
- FinOps drives collaboration between teams and improves cost awareness.
- Real-time insights empower teams to manage cloud usage effectively.
- Adopting a unified cost optimization strategy enhances proactive management of cloud expenses.
On this page
FinOps in focus
According to Gartner®, “The worldwide end-user spending on public cloud services is forecast to total $723.4 billion in 2025”1, adoption of AI has increased end user spending on multi-cloud services worldwide. Furthermore, “Gartner predicts 25% of organizations will have experienced significant dissatisfaction with their cloud adoption by 2028, due to unrealistic expectations, suboptimal implementation, and/or uncontrolled costs.”2
Managing multiple clouds effectively requires robust governance, cost management, and a well-defined strategy to avoid complexity and inefficiency. Cost management becomes challenging as cloud providers offer dynamic pricing models depending on factors such as storage, instance type, data egress, geographic location and other add-ons. Assuming an average of 30% cloud spending is wasted due to various factors, including unused resources, inefficient utilization, and overprovisioning, forcing organizations to balance performance goals with costs while bringing accountability to cloud spend. This shift in cloud cost management is known as FinOps
FinOps in action
Cloud cost management involves implementing specific methods or practices to prevent over-utilization. Some of these are as follows:
- Cloud budgeting - Review historical usage to identify necessary cloud resources and services, estimate cost budgets, and set spending limits. When spending exceeds a defined threshold, take action by reducing resource usage or revising the budget.
- Visualizing real-time usage – Monitor real-time cloud usage across services, regions, usage types, or departments—especially in multi-cloud environments. This visibility helps gain a comprehensive view of costs and optimize usage across cloud providers.
- Optimization and auto-scaling – Right size instances based on workload to optimize cloud resources. Organizations can leverage the rightsizing recommendations provided by the native cloud tools or third-party monitoring tools and scale their resources accurately by switching to reserved, spot, or alternate instance types without compromising performance. Apply autoscaling policies to shut down unused instances or scale up or down resources depending on the peak hours, avoiding unnecessary costs.
- Tagging – Apply accurate tagging to categorize spending, improve budget forecasts, and gain granular visibility by projects, usage, and department. Tagging aids in identifying underutilized or orphaned instances that can be reallocated or terminated to ensure accountability.
FinOps framework
FinOps is a more proactive approach offering a thoughtful framework that helps organizations better understand and utilize their cloud resource usage. Centered around six core principles that promote planning and budgeting, real-time cost visibility, and collaboration among finance, engineering, and operations. By fostering shared accountability, FinOps helps align cloud investments toward business goals. The FinOps journey is structured through three iterative phases:
- Inform: Establishes visibility into cloud spending and creates shared accountability. Activities include benchmarking spending, tagging costs, and setting up budgets.
- Optimize: Focuses on reducing cloud waste and improving efficiency across cloud resources and includes activities like rightsizing or shutting down underutilized resources, implementing scheduling/automation based on workloads.
- Operate: Focuses on embedding cost awareness practices into ongoing operations and includes activities like enforcing strict policies around tagging provisioning, monitoring anomalies and root cause spikes.
Organizations need to go through the inform, optimize, and operate phases on an iterative cycle to align engineering velocity with financial accountability to derive maximum business value.
Cost optimization
An ideal FinOps platform should have capabilities to create a balanced framework for organizations to innovate and scale efficiently and align with overall goals. The implementation of real-time monitoring tools can help boost operational efficiency and reduce the burden on IT teams.
The best practices of cloud cost management and FinOps bring together monitoring of application layer and infrastructure layer into a single console including OpEx, visualizing, forecasting, and alerting based on the usage. Tagging and rightsizing features enable teams to tag budgets and costs per team, project, or department and automatically analyze the usages. Based on the analysis performed, rightsizing recommendations are made available such as switching to spot instances, reserved instances, or shutting down of idle or under-utilized resources. It is also capable of integrating with Infrastructure-as-Code (IaC) platforms to implement automation and governance such as policy-based shutdowns for non-production environments, autoscaling of instances to meet demands.
To conclude, with FinOps framework it becomes a shared responsibility among the IT, DevOps, finance, and other teams of an organization to handle cloud computing costs and infrastructure. Additionally, the right tool can help businesses to derive potential savings in any FinOps strategy.
References
1Gartner Press Release, Gartner Forecasts Worldwide Public Cloud End-User Spending to Total $723 Billion in 2025, November 19, 2024.https://www.gartner.com/en/newsroom/press-releases/2024-11-19-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-total-723-billion-dollars-in-2025
2Gartner Press Release, Gartner Identifies the Top Trends Shaping the Future of Cloud, May 13, 2025.https://www.gartner.com/en/newsroom/press-releases/2025-05-13-gartner-identifies-top-trends-shaping-the-future-of-cloud
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
